Solution Providers Say AT&T Wireless Is Hoarding CDPD Transition Sales

Solution providers said AT&T Wireless has indicated to some of its partners that they will not be allowed to sell GPRS equipment to or collect activation commissions from customers that need to transition from CDPD to the carrier's new 2.5G wireless network.

"We're talking about all VARs and integrators who have been selling CDPD equipment and activations," said one partner, who asked to remain anonymous.

Moreover, a vendor who has been working with AT&T Wireless on GPRS solutions said the carrier is more interested in direct sales. "We don't see any interest from them in putting sales through the channel," the vendor said.

An AT&T Wireless spokesman firmly denied any exclusive GPRS direct efforts.

At&T Wireless is working with resellers on a "case-by-case basis" to evaluate transition and compensation programs for resellers selling CDPD, he said.

Resellers are an integral part of the GPRS sales channel, he said, noting that "we are constantly looking to improve our relationship with resellers."

Solution providers have been up in arms over a letter AT&T has sent to customers warning that it will shut down its nationwide CDPD network in June 2004. The carrier plans to stop taking activations for the network next March.

Solution providers that serve the law enforcement vertical--one of the largest users of AT&T's CDPD network, according to analysts--have said the GPRS network is currently too expensive and lacks the proper security to appeal to their public safety clients. Meanwhile, law enforcement officials have been lobbying the carrier to postpone the shutdown.

At an International Association of Chiefs of Police conference in Minneapolis this month, a group of law enforcement officials unfurled a banner in front of the AT&T Wireless both that said, "AT&T Wireless is abandoning us," according to one attendee.